TD Bank Answers Customer Needs Through Data And Analytics

Matt Chevalier, TD Bank's senior VP of retail strategy and marketing, led a major data-driven effort to change the way the bank measures its performance.

Matt Chevalier has served in a number of positions in his 25-year career at TD Bank (headquartered in Cherry Hill, N.J., and Portland, Maine; $228 billion in assets), working as a teller, a technology systems analyst and a product manager. The common thread that runs through his many roles at TD, including his current job as senior VP of retail strategy and marketing, is a continual focus on improving the customer experience.

"For me, I always look for a challenge, and do I have the opportunity to impact the customer experience better in any kind of role?" Chevalier says.

Chevalier has brought that focus on customer experience to his role in the retail strategy and marketing group. In the past year, he has led a new effort by TD Bank to better align its sales goals for each branch with customer demand. While many banks are closing branches, TD plans to continue to open new ones, Chevalier says, and is balancing investments in its various retail delivery channels.

"You want to make sure that you have as much information as you can to make sure that you are really addressing those customer needs … to be able to align that with our activities and how we goal our employees. It puts customer experience in concert with how we measure employees and track goals," Chevalier explains.

To improve TD Bank's model for measuring sales performance, Chevalier started by gathering the necessary data to give the bank a better picture of its customers' needs. Chevalier and his team examined historical data on branch performance, then brought in a number of other data points, such as customers' commuting patterns, neighborhood demographics and competition in the area. TD also partnered with Novantas, a management consulting firm, to support the project's data needs, he says.

"We looked at the opportunity that each store location has by product to have a very prescribed goal that is aligned with the customers' needs," Chevalier says. "If I find out that I have a store where customers really need small-business accounts, then I'm going to ensure that I have the personnel there to serve that need, and we will adjust the goals for that branch accordingly."

Chevalier and his team built a new model for determining sales performance targets specifically for the branch channel based on their data inputs and analysis, and took the model to pilot last May. They selected a number of branches from a cross-section of markets across the country for the pilot, and then created a control group of branches with similar characteristics. The pilot lasted one quarter, and Chevalier says the results were promising.

"Employees were telling us, 'Wow, the goals just feel right.' And when the goals feel right, the employees who had goals that were too high feel like they have a fighting chance. Those that had goals that were too low have to push a little harder to ensure they respond to customer needs," Chevalier notes.

All of TD Bank's more than 1,300 U.S. branches adopted the new model at the beginning of August. "Although it's still early [since the project launch], we're seeing a pretty consistent lift [in sales] across the board," Chevalier shares. TD Canada Trust is already reviewing the new sales targets model for TD's Canadian branches, he adds.

Jonathan Camhi has been an associate editor with Bank Systems & Technology since 2012. He previously worked as a freelance journalist in New York City covering politics, health and immigration, and has a master's degree from the City University of New York's Graduate School ... View Full Bio

I know people who bank at TD only because they have branches open on Sunday. I don't know if enough people are attracted to the bank for that reason that it makes up for the cost of having the branches open that extra day though.

Yes, I'm impressed with TD's branches too. I drove past one on Sunday afternoon in NJ and there were people walking in and out. I had to do a double take, since you never see bank branches open on Sundays.

Good to see a bank investing in technology , analytics will help banks leverage historical customer data to provide better services and make meaningful changes to existing processes/policies . I work for McGladrey and there's a whitepaper on our website with great information for banks on optimizing existing technology and other valuable insight into improving overall performance " Eight ways for your financial institution to boost performance now "

What I am hearing is that the branch is going to evolve into less of a transaction and sales center into more of an education & consultation center -- enabled, of course, by technology (tablets, analytics, telepresence, etc.). Will be interesting to see if TD's strategy is going to drive some of that kind of transformation, along with improving sales/revenues.

I've seen the same at the TD branches I've visited. They are definitely making a conscious effort to stay ahead of the curve when it comes to branches. This sales target initiative is another example of that.

I've always been impressed with TD Bank branches Gă÷ I don't have an account there but there are so many around the region I often find myself in there to convert change or grab cash at an ATM. They are well-lit, well-laid out (you can see where you need to go easily), and not cluttered like some other banks with big waiting couches for appointments you don't need. Maybe it's a small sample size, but I bet they've done the work to figure out what people need from branches, and it's usually quick service Gă÷ not opening complex accounts.